Eksons Corporation - Backed by cash

Eksons Corporation - Backed by cash

Date: 26/11/2014

Source	:	CIMB
Stock	:	EKSONS		Price Target	:	1.50	|	Price Call	:	BUY
				Last Price	:	1.46	|	Upside/Downside	:	+0.04 (2.74%)

---

Target RM1.50 (Stock Rating: HOLD)

At only 29% of our FY15 core net profit, Eksons's annualised 1HFY15 core net profit was below our expectation mainly due to weak plywood prices. But 1H15 net profit rose 230% due to EI gain from "The Atmosphere" land sale. We raise our FY15 EPS forecast to reflect the EI gain but cut FY16/17 EPS for the weak plywood price outlook. Our target price, based on an unchanged 20% discount to adjusted SOP/share, falls to RM1.50. The SOP discount reflects its small market capitalisation and tight trading liquidity. The stock remains a Hold. We advise switching to MyEG for exposure to the small-cap sector.

    

1H15 net profit up 230% 

1H15 revenue rose 95% and net profit surged 230%. This was mainly due to RM51m net profit gain from "The Atmosphere" land sale (sold for RM140.3m cash). However, 1H15 core net profit was RM7m (-56% yoy) due to weak timber and property earnings. No interim DPS was declared, which was in line with our expectations. However, we are disappointed that the company did not reward shareholders with a special bonus using proceeds from "The Atmosphere" land sale. 2Q15 timber net profit came in at only RM3.2m (-43% qoq) due to higher log costs, while plywood prices remained flat. 

Challenging market conditions 

The outlook looks challenging for tropical plywood over the next few quarters. Japan, the world's largest importer of tropical plywood, is going through a soft patch. The country is in recession after the government raised sales tax from 5% to 8%. Domestic demand and housing starts are likely to be affected by Japan's weak economy. To make matters worse, the yen has depreciated against the US$ over the past few months. ¥-US$ was at 101 a few months ago compared to 117 currently. This could lead to slower plywood purchases by Japanese customers over the next few quarters. 

Cash rich 

The company's balance sheet is cash rich - RM137m net cash or RM0.83 net cash per share as at end-Sep. Cash currently contributes 57% of its share price. The company has indicated that it plans to use the cash to expand its property landbank, likely somewhere in the Klang Valley. With the completion of "The Atmosphere" project, the company is looking to launch a residential development project in Bukit Serdang, with a GDV of above RM100m.

Source: CIMB Daybreak - 26 November 2014, Full PDF Report

Eksons 1H net profit 92.981 million (increased 335.94%)

**LiangChai : 看看 Eksons 的 Basic Earning Per Shares 既然 是31.70sen. 好高。Eksons 的成绩单有亮点。

股海宝藏：亿顺机构今年会更好

最近，亿顺机构（EKSONS，9016，主板工业产品股）的商业运程顺风顺水，左右逢源。

去年11月，该公司以1亿4030万令吉，出售一块14.64英亩位于雪州斯里肯邦岸商业地段，税前盈利竟高达1亿1800万令吉。

另外，从去年8月开始，令吉兑美元汇率节节败退，亿顺三夹板出口的赚幅因而走高，盈利上升。

亿顺拥有3项业务：
三夹板：从美元上涨中受惠

在新加坡籍大股东戴华新的精明领导下（拥有超过24年经营木材经验），亿顺于2000年成功转型，放弃纺织业，大胆投入三夹板业务，从此扭转乾坤，转亏为盈。

亿顺专门制造薄于3毫米（甚至是薄到2.5毫米）的热带木薄夹板。这些三夹板是以“熊猫”品牌销售，主要是用于室内装潢和设计；由于品质高而闻名国际，因此是本区域最大的薄夹板制造商之一。

亿顺有能力将各种不同等级的木材，包括低等级木材，转为符合国际水准的高品质夹板，这令它长期处于竞争优势，也意味着不容易面对缺乏木材供应的问题。

更可贵的是，亿顺在生产三夹板方面的木板使用率超过50%，比同行的46%到48%更高。高使用率主要归功于使用特别改良的工厂，令厂房能更有效操作，生产成本更低。

亿顺的两家厂房设在砂拉越诗巫（约40英亩）与沙巴斗湖（47英亩），年总产能为28万5000立方米。

该公司已在2005年至2009年财政年间，耗资5000万令吉购买机械提升生产效率，因此，公司未来的资本开销不大。

亿顺的三夹板产品，超过90%出口至美国、中东、北非、台湾、韩国等地，收入为美元，而成本是以令吉计。因此，在美元兑令吉大涨后，它的赚幅提高，从而增加此项业务的盈利表现。

产业：有利可图

2008年，为了使盈利多元化，亿顺作出一项正确且有眼光的商业决定，即进军巴生谷的产业领域。

当年，美国发生金融危机，全球经济不景气，大马地产价便宜，亿顺拥有60%股权的子公司———The Atmosphere有限公司，毅然收购在雪兰莪斯里肯邦岸（位于首都市南部）55英亩的商业地段，成交价6100万令吉。

这地点靠近白蒲大道和怡观园佳世客，商业发展计划包括购物中心、霸级市场、零售商店、酒店和服务公寓，发展总值6亿令吉。

亿顺于2009年推介首个产业计划，反应良好。

在过去4年，产业发展已为公司贡献4486万令吉盈利。

今次售地获巨利超过1亿令吉，更加强公司发展产业的信心。

去年，公司完成收购66英亩芙蓉拉沙区地皮，成交价1620万令吉，此外也建议收购62英亩雪兰莪文良港地段（成交价2000万令吉）与6.5英亩雪兰莪八打灵区地段（成交价2605万令吉）。

因此，产业发展势必成为亿顺另一项有利可图的核心业务。

生物废料发电：盈利稳定

亿顺在沙巴斗湖设有一座3兆瓦的生物废料发电厂。

该厂利用公司的木材废料发电，成功减少用电成本，提高三夹板赚幅。

在过去4年，发电业务每年为公司赚取700万令吉至1000万令吉的盈利。由于国能电费一再提高，此业务对亿顺在减轻燃料成本方面，就更加重要。

现金暴增至1.3亿

至2013年12月，亿顺持有净现金6990万令吉，在售地所得1亿630万令吉现金与扣除收购2地段开支4225万令吉后，公司的净现金将暴增至1亿3395万令吉；或每股净现金81.6仙，这有利于公司将来展开更大规模的商业活动。

股息有望增加

亿顺于过去多年皆派发股息，并且曾于2007年派发免税特别股息20仙。

今年，在净现金大增与盈利成长之下，公司有望派发比往年更高的股息。

资产储备金高

至2013年12月，亿顺净资产是每股2.54令吉，如果加上售地特殊盈利，净资产可升至每股2.86令吉。

至于公司储备金是3亿3800万令吉，为公司将来派发红股制造有利条件。

总结

三夹板：在全球经济回稳和美元持续坚挺之际，此项业务将会有更好的盈利表现。

产业发展：亿顺售地预计于今年6月底前完成，届时，集团将获得现金1亿630万令吉，净利8720万令吉。同时，公司已计划于上半年在雪州推介新的产业发展计划，推高公司的盈利。

由此观之，亿顺今年的业绩势必比去年更好。

潜在风险

1.地库脱售失败。
2.三夹板价格疲软。

免责声明

本文分析仅供参考，并非推荐购买或脱售。投资前请咨询专业金融师。

[南洋商报]

Timber, timber products exports to hit RM21b this yr

KUALA LUMPUR: Malaysia's timber and timber-derived products exports are expected to be around RM20 billion to RM21 billion this year, almost equalling last year's exports totalling RM20.5 billion.

Deputy Minister of PLANTATION [] Industries and Commodities Datuk Hamzah Zainudin said the projection was in tandem with the sluggish global economic
climate influencing demand and exports.

"The main recipient countries that receive our timber exports like the United States, Japan and several european nations are grappling with economic
crisis, thus demand from them are uncertain at the moment.

"Earlier, we projected our timber export value to increase by six to seven per cent this year, but if we can maintain last year's export worth, I think
it's good enough (given the current sluggish economic climate)," he told reporters after opening a national seminar on timber industry in the Industrial
Building System (IBS) here on Friday, Oct 28.

Hamzah said political uncertainties in several Middle East countries are also expected to influence timber exports value as several countries from that
region imported timber and timber-derived products from Malaysia.

He said although prices of other CONSTRUCTION [] materials like cement and steel are uncertain in the market, that situation did not influence demand for
timber so much as timber imports depended on requirements and affordability of a country.

On domestic market, Hamzah said the local timber consumption was about RM7 billion a year, with the housing sector being the biggest contributor to the figure.

To encourage higher use of local timber and boost its export value, he said the Malaysian Timber Industry Board (MTIB) has embarked on a replanting
programme to plant 25,000 timber trees of various species every year.

"Over the next five years, we expect to plant about 125,000 timber trees. This move will ensure that we can meet market demand," he added.
The seminar, jointly hosted by MTIB and Universiti Putra Malaysia, is to impart knowledge and provide exposure to industry players on opportunities to
explore in the IBS particularly using timber as a construction material. - Bernama

Stocks to watch 20111027: Dutaland, IOI Corp, Hibiscus, timber stocks

KUALA LUMPUR: The outcome of the on-going European Union summit on Wednesday, Oct 26 and whether it can hammer out a convincing plan to tackle the region’s debt crisis will decide the direction of the markets on Thursday.

Reuters reported prospects for a comprehensive deal to resolve the crisis at the summit looked dim, with deep disagreements on critical aspects, including how to give the region's bailout fund greater firepower.

At Bursa Malaysia, the FBM KLCI could give up some of the late gains on Tuesday when it reopens for trading on Thursday, unless there is a strong positive plan to resolve the crisis.

Among the stocks to watch are DUTALAND BHD [], IOI CORPORATION BHD [], Hibiscus Petroleum Bhd and timber stocks.

IOI Corporation Bhd announced on Tuesday it terminated its proposed acquisition of 11,977.91 ha (29,597.42 acres) of oil palm PLANTATION [] land from Dutaland Bhd for RM830 million.

IOI Corp said on Tuesday, the cancellation was “due to non-compliance of certain terms and conditions”. However, Dutaland has rejected the reasons for the termination.

Hibiscus resumes trading on Thursday, after its suspension on Tuesday to acquire a 35% equity stake in Lime Petroleum Ltd for a total of US$55 million.

The Lime Group is principally involved in the exploration and production activities in the oil and gas industry in the Middle East region.

Hibiscus said Lime Group’s assets are located in the Middle East, where extensive oil & gas infrastructure has been developed. It also said Lime Group’s assets are located in an area where several other oil and gas companies with significant financial and technical resources operate.

“These other companies include major integrated oil and natural gas producers and numerous other independent oil and natural gas companies and individual producers and operators. In the event that Lime Group has a successful exploration campaign, the assets could attract interest from these other companies as acquisition targets and/or for partnerships,” it said.

Timber stocks could be in focus after the Netherland’s appeals panel has rejected the Malaysian Timber Certification Council’s (MTCC) appeal against a 2010 decision by Dutch timber procurement body TPAC.

According to the Timber Industry magazine, the panel found that the Malaysian Timber Certification Scheme (MTCS) had not met the Netherland’s procurement criteria for wood.

Malaysia Airports Holdings Bhd (MAHB) could continue to see trading interest after its earnings rose 74.1% to RM108.18 million in the third quarter ended Sept 30, 2011 from RM62.11 million a year ago,.

Year to date, the group's profits rose 42.7% to RM278.23 million from RM194.87 million. Revenue rose 16.4% on-year from RM1.65 billion to RM1.92 billion.

GLOBETRONICS TECHNOLOGY [] BHD []’s earnings fell 10.6% to RM7.73 million in the third quarter ended Sept 30, 2011 from RM8.65 million a year ago following a decline in revenue.

Revenue declined 7.4% to RM70.72 million from RM76.38. Earnings per share were 2.91 sen compared with 3.27 sen.

Timber stocks climb on Japan rebuilding demand

KUALA LUMPUR: Timber stocks Jaya Tiasa and TA ANN HOLDINGS BHD [] and JAYA TIASA HOLDINGS BHD [] rose in line with the firmer recovery on Bursa Malaysia on Thursday, Oct 13 and underpinned by expected demand from Japan.

At 3.27pm, Jaya Tiasa was up 24 sen to RM5.42 with 30,900 shares done. Ta Ann added 23 sen to RM4.68 with 683,500 units transacted.

The FBM KLCI rose 12.99 points to 1,441.49. Turnover was 1.13 billion shares valued at RM1.32 billion. There were 609 gainers, 167 stocks down and 238 unchanged.

Amresearch maintained a Buy on Ta Ann, with a lower fair value of RM6.50/share (versus RM6.96 previously) based on a downward revised PE of 14 times (vs 15 times previously) against an unchanged FY11F EPS of 46.4 sen. It said the lower PE was more in line with current market valuations.

“We recently also revised downwards Jaya Tiasa’s PE by one notch to 14 times for the same reason. Ta Ann is primed to benefit from the impending passing of an estimated 12 trillion yen (US$156 billion) budget that is expected to be tabled at the Diet,” it said in a report on the sector last Friday, Oct 7.

Amresearch said Ta Ann’s timber prices have held up rather well, in spite of the easing of demand from Japan due to high inventory and delayed reCONSTRUCTION [] efforts.

Annualised housing starts of 841,401 units for 2011 translate into a 3.5% growth from the previous year’s 813,126 units.

木材出口全年預測下調

（吉隆坡23日訊）基於國內木材及木材產品出口受全球經濟放緩的衝擊，大馬木材工業局（MTIB）下調木材產品的全年出口預測至200億令吉。


對比年初設下的230億令吉出口目標，大馬木材工業局總監賈拉魯丁博士坦言，今年木材的出口表現，將因經濟放緩而難逃萎縮的局面。

賈拉魯丁今日出席《善用木材打造可持續發展的未來》研討會期間，向記者表示，只要木材出口年內達到200億令吉的水平，已實屬不易。去年，國內木材及木製產品出口高達205億2000萬令吉。

無論如何，大馬種植及原產業部副部長拿督韓沙再努丁表示，出口表現降低，將對國家木材工業政策（NATIP）設下在2020宏願年達到530億令吉的出口目標不利。

「木材工業局應爭取與大馬木桐理事會（MTC）及業界聯手重新制定國內營銷工作的策略，以解決業界一致面對的多重挑戰。」

除了出口方面，韓沙再努丁也呼籲，木材業應該關注極具龐大增長潛能的國內市場。

木材消費料超越200億

「木材工業局與大馬森林研究局（FRIM）最新報告顯示，國內木材消費預計可超越200億令吉大關。」

國內木材消費當中，鋸成木材（sawn timber）占108億令吉最大份額、傢俱與夾板（Plywood）各佔40億令吉、門窗框架及其它產品均為10億令吉。

上述研討會由木材工業局、瑪拉工藝大學（UITM）、建築業發展局（CIDB）及公共工程局（JKR）聯辦，共有150人參與。

[Oriental Daily ]

Eksons 1Q net profit 18.124 million (increased 96.00%)

億順2234萬購地發展

（吉隆坡17日訊）億順機構（EKSONS, 9016, 主板工業產品組）以2千234萬7千586令吉80仙，收購鵝麥路37塊地，以提高未來產業發展地段。

該公司發文告表示，上述地段總面積達73.29英畝，公司看好這些地段的發展潛力，預計地段對公司未來盈利帶來正面貢獻。（星洲日報／財經）

EKSONS Volume Distribution

                            1 Day

                            5 Day
                            5 days chart excludes current trading day's data

                            10 Day
                            10 days chart excludes current trading day's data

EKSONS Historical Charts

Weekly Price Chart

30 Day Chart

2 Weeks Historical Intraday Chart

6 Month Chart

6 Months Historical Daily With Technical Indicators

6 Months Historical Candlesticks With Technical Indicators

1-Year Historical Daily Chart

1 Year Historical Daily With Technical Indicators

5-Year Historical Daily Chart

Eksons Announcements

CURRENT

---

●CHANGES IN SHAREHOLDING

●ANNUAL REPORTS

HISTORICAL

---

●CHANGES IN SHAREHOLDING

ARCHIVES

---

●CHANGES IN SHAREHOLDING

CHONGAI CORPORATION BERHAD

Changes In Shareholder

EKSONS Price

EKSONS 亿顺机构 (9016)

EKSONS CORPORATION BERHAD
TB 4327, Block 31,
2nd Floor, Fajar Complex,
Jalan Haji Karim, 91000 Tawau, Sabah

Telephone : 6089 757911
Fax: 6089 757008

Listing Date: 16.12.1993
Par Value: 0.80

Market: MAIN
Sector: INDUSTRIAL
Major Industry: PAPER & FOREST PRODUCTS

Formerly known as:
CHONGAI CORPORATION BERHAD

About Eksons
Incorporated in 1990, Eksons Corporation Bhd was listed on the Second Board of the Kuala Lumpur Stock Exchange (now Bursa Malaysia Securities Bhd). After a reverse takeover in April 2000, Eksons was subsequently promoted to the Main Board in February 2001.

The Eksons Group specialises in the manufacturing of tropical thin plywood of less than 3.0 millimeter in thickness, particularly in the 2.5 and 2.7 millimeter categories. The plywood is sold under the “Panda” brand name, which is an internationally established name known for its high quality. The thin plywood is used mainly for internal furnishing and decorative purposes. Eksons also produces veneer and sawn timber, targeted largely at the export market.

One of Eksons’ competitive advantages is our ability to convert various grades of logs into high and consistent quality plywood in accordance with international standards. We have the ability to convert even low grades of logs into high quality plywood which means we are not hampered by lack of options in our suppliers.

We have 2 factories with a combined installed capacity of 285,000 m3 per annum, located in Sibu, in the state Sarawak and Tawau in the state of Sabah. Over 90% of our production are exported, mainly to the US, Middle East, North Africa, Taiwan & Korea.

The Eksons Group also has investments in property development and property holding.